Bitcoin price began a sharp decline after trading near $45,000. BTC is down over 8%, but bulls appear to be active above $40,000.
- Bitcoin is showing some signs of weakness from its $44,699 high.
- The price is trading below $43,500 and the 100-hour simple moving average.
- On the hourly chart of the BTC/USD pair (data feed from Kraken), a break has occurred below a key bullish trendline with support around $43,500.
- Both could see strong buying interest near $40,000.
Bitcoin price falls significantly
Bitcoin price remained in bullish territory even after breaking the $40,000 resistance level. BTC has steadily risen above the $42,000 and $43,000 levels. The price also soared to more than $44,000.
However, it failed to test the $45,000 resistance. A high was formed near $44,699 and the price began a sharp downward correction. There was a move below the $44,000 level. Moreover, a break occurred below the main bullish trendline with support around $43,500 on the hourly chart of the BTC/USD pair.
The pair broke below the 50% Fib retracement level, rising from the $39,398 swing low to the $44,699 high. Bitcoin is currently trading below $43,500 and the 100-hour simple moving average.
However, bulls are protecting the $40,000 support and 76.4% Fib retracement level, rising from the $39,398 swing low to the $44,699 high. The price is trying to recover and is facing resistance near $42,400.
Source: TradingView.com BTCUSD
The first major resistance is forming around $43,2000, above which the price may gain bullish momentum and rise towards $44,000. A break above the $44,000 resistance could signal a strong upside. The next major resistance could be near $44,200, above which BTC could rise towards the $45,000 level.
$40K is the key to BTC
If Bitcoin fails to rise above the $43,200 resistance zone, another decline could begin. Immediate support for the downside is near the $41,200 level.
The next major support is near $40,500, below which the price could test the $40,000 area. There is further downside risk if it falls below $40,000. If indicated, the price may fall towards the $38,500 support in the near term.
Technical indicators:
Hourly MACD – MACD is now picking up speed in bearish territory.
Hourly Relative Strength Index (RSI) – The RSI for BTC/USD is now below the 30 level.
Key support levels – $41,200, then $40,000.
Key resistance levels – $42,400, $43,200 and $44,200.